State ducks pork barrelling ban

The Perrottet governmen is at odds with the state’s corruption watchdog by refusing to make pork barrelling an offence.

ICAC last week strongly urged the NSW government to pass new laws making pork barrelling illegal. Picture NCA Newswire/ Gaye Gerard.

The Perrottet government will make it compulsory for ministers to give written reasons for approving taxpayer-funded grants but has stopped short of making pork barrelling an offence in NSW, putting it at odds with the state’s corruption watchdog.

The government confirmed on Tuesday that it would support all 19 recommendations of a review into the way ministers hand out grants, including a finding by the review authors that there were already “existing legally enforceable measures” to deal with pork barrelling.

A Coalition government spokesperson reiterated the finding of NSW Productivity Commissioner Peter Achterstraat and head of Department of Premier and Cabinet Michael Coutts-Trotter that it would be inappropriate to include pork barrelling in the Independent Commission Against Corruption legislation because the act already included an “extensive definition of what constituted corrupt conduct”.

However, ICAC last week strongly urged the government to pass new laws making pork barrelling illegal, with limits imposed on the power of ministers to hand out taxpayer-funded grants.

At an unprecedented public forum organised by the watchdog to discuss legislative curbs on pork barrelling, ICAC chief commissioner Peter Hall QC said the unanimous view of the panel was that “it must be done”.

Mr Hall cited the Morrison government’s “sports rorts” affair and two NSW grants schemes for council and regional arts spending as examples of “parallel assessment” processes where funding was allocated by ministers for “the purpose of electoral advantage” rather than merit.

The NSW government’s decision not to make pork barrelling an offence also contrasts with the Albanese government’s commitment to give its promised federal integrity commission the power to investigate pork barrelling at a national level.

The decision comes ahead of the impending release of ICAC’s findings from a long-running investigation into pork barrelling allegations involving former NSW Liberal premier Gladys Berejiklian and her ex-boyfriend, disgraced MP Daryl Maguire.

During her evidence, Ms Berejiklian said it should be no surprise governments “throw money at seats to keep them”, comments that triggered the Achterstraat/ Coutts-Trotter review.

Under the new Grants Administration Guide announced on Tuesday, a minister who approves a grant must record the decision in writing, detailing how it achieves value for money. And if the decision departs from the recommendations of officials, the minister must explain why.

All new grants must have published guidelines, and a cross-agency “community of practice” body will be set up to oversee grants administration

A whole-of-government database will show upcoming grant opportunities, all grants awarded and a record of ministerial decisions that vary from the recommendations of officials. The data will be publicly available online.

Premier Dominic Perrottet said the recommendations would be implemented as swiftly as possible. “Grants are an important part of everyday life in our state – from sports clubs to disaster recovery, business assistance to Covid support programs – and we need to do everything we can to ensure every dollar of grant money is appropriately directed and invested,” Mr Perrottet said.

“It is … important that elected officials retain some discretion in the administration of grants programs. However, the NSW government is committed to ensuring this discretion is exercised as fairly, transparently and effectively as possible.”